The failure to file was the simple answer ( because they never filed real legal filings ) - was in regard to the FALSE filings and the selling of illegal shares by the insiders and their gang
SEC violations by the truck load = Security fraud
100% of every single thing that went on here was caused by the crooks who controlled the company
Honestly small town jay you have always had a hard time seeing the truth about the spongetech scam but I'm guessing that is because you Ignored all the fact's because all your DD has been fabrication and that is a fact!